ZDNet reports on a collaboration that should bring mobile payments closer to reality.
Sony and former Philips chip unit NXP Semiconductors have announced they will create a joint venture to create a secure chip that enables short-range wireless interaction between handhelds, PCs and other consumer electronic devices.
The problem with mobile payments has not been one of core technology. There have been a number of successful pilots in Asia and Europe. The article has some good links but you can also look at the Octopus card and the Oyster card. The core wireless and security technologies have been available for nearly a decade. The main issue has been compatibility (and the associated increase in cost if a device were to support multiple solutions). That’s why the Sony-NXP collaboration is important–together the companies will have critical mass to push a common solution to market. ETA 3+yrs?
The real issue is not compatibility… its the business case. Any time you have the convegence of two vertical markets, ie. Telco’s and Banks to a single access point, ie. Mobile Phone…. all you get is two mature business cases fighting over one wallet share.
The solution is to “dis-aggregate” both verticals and come up with a mobile payments product that stands on its own, separate from both verticals. If this is not done…. the end user value will always be close to zero.
ETA-DOA for SONY-NXP….
……even before they address Patent infringement issues.